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M.152 An Aid to Accountancy—CBSE XII

(e) Aman agreed to take the responsibility of completing dissolution at an agreed
remuneration of ` 1,000 and to bear all realisation expenses. Actual realisation expenses
` 800 were paid by the firm.
(f) Loss on realisation was ` 54,000. (6)
15. From the following Receipts and Payments Account, prepare Income and Expenditure
Account of Patel Education Society for the year ending 31st March, 2018 and Balance
Sheet as on that date:
Dr. RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018 Cr.
Receipts ` Payments `

To Balance b/d 33,500 By Salaries 12,000
To Entrance Fees 3,000 By Electricity Charges 1,200
To Subscription: By Other Expenses 5,250
Arrears 500 By Fixed Deposits 25,000
Current Year 35,000 By Utensils 2,000
Advance 750 By Creditors 10,000
To Surplus on Sale of Refreshments 1,000 By Balance c/d 25,500
To Sale of Old Typewriter (Book value—Nil) 4,000
To Miscellaneous Income 3,200
80,950 80,950

(i) Following were the assets and liabilities as on 1st April, 2017:
Utensils ` 8,000, Furniture ` 25,000, Consumable stores ` 3,500, Creditors
` 12,000.
(ii) On 31st March, 2018 Stock of Consumable Stores was ` 7,000; Creditors were
` 5,500; Outstanding Subscription ` 750; and Accrued Interest on fixed deposits
was ` 250.
(iii) Charge depreciation on the closing balance of Furniture and Utensils @ 10% and
15% respectively. (6)
16. Bharat Ltd. issued 50,000 shares of ` 10 each at a premium of ` 2 per share for
subscription payable as follows:
` 3 on Application,
` 6 on Allotment (including premium), and

` 3 on Call.
Applications were received for 75,000 shares and pro rata allotment was made as follows:
To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000
shares were issued. All money due was received except the allotment and call money
from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his
shares were forfeited. The forfeited shares were reissued for ` 7 per share fully paid-up.

Pass necessary Journal entries for the above transactions.